How much do employers get under CVJRS?
[ch 1: pages 10-11]For the first five months of the scheme, from the start of March to the end of July, employers receive 80% of the wage costs of furloughed employees up to a wages cap of £2,500. This is 80% of wages, employers’ National Insurance contributions and employers’ pension contributions (up to a 3% limit and above a set threshold). However, this is reduced in the last three months of the scheme.
In August, the scheme continues to pay 80% of wages, up to a cap of £2,500, but employers become liable for employers’ NI contributions and employers’ pension contributions.
In September, the scheme pays 70% of wages up to a cap of £2,187.50, but employers continue to be liable for their NI and pension contributions.
In October, the last month of the scheme, it pays 60% of wages, and again employers are responsible for their NI and pension contributions.
As employers must pay employees 80% of their wages throughout (see below), the employers’ contribution to the cost of furloughing their employees gradually increases.